Chapter 7 Part 4

Question 1

Which benefit is based on person’s primary ins amount

Long term care benefit

Social security disability befit
Accidental death benefit

Answer 1

Social security disability benefit

Question 2

Age 27 and meets definition of total disability

Worki credits?

12 credits
20 credits
6 credits
40 credits

Answer 2

12 credits between 21 and 27

Question 3

Which would social security disability benefits NOT cease

Son gets part time job to help support family
Reaches 65
Does

Answer 3

Son gets part time job to support family

Question 4

Gross income all income from whatever source minibus adjustments to income

Adjusted gross income
Affordable care act
Estate
Taxable

Answer 4

Adjusted gross income

Question 5

Federal law that mandates increased preventive educational and community based health care services and that established the health insurance marketplace to make health coverage available to any uninsured individuals

Estate
Overinsurance
Tax deductible
ACA affordable care act or PPACA

Answer 5

ACA

Question 6

A persons net worth

Estate
Adjusted gross income
Liquidity

Answer 6

Estate

Question 7

Ins that exceeds in amount the actual value of the person or property insured or ins in a greater amount than the insured can afford

Tax deductible
Taxable
Estate
Overinsurance

Answer 7

Overinsurance

Question 8

Qualified expense that may reduce amount of income subject to taxation

Tax deductible
Taxable
Estate

Answer 8

Tax deductible

Question 9

Subject to taxation

Taxable
Beneficiary
Liquidation

Answer 9

Taxable

Question 10

Alexander has policy with ex wife as beneficiary. What provision allows him to change beneficiary to new wife

Entire contract
Payment of claims
Change of beneficiary

Answer 10

Change of beneficiary

Question 11

Which is false re change of beneficiaries provision

Policyowner has the right to change beneficiaries in any case

All policies that allow a death benefit must at least provide option of change of beneficiary provision

Policyowner cannot change beneficiaries if he/she has chosen to have irrevocable beneficiary unless policyowner has permission of irrevocable beneficiary

Answer 11

Policyowner has right to change beneficiaries in any case

Question 12

When disabled dependent child reaches age limit for coverage how long does policyowner have to provide proof of dependency in order for dependent to remain covered under policy

30 days
31 days
15 days

Answer 12

31 days

Question 13

Owner has health ins policy with wife listed as primary beneficiary. He would like o change primary beneficiary to his sister. Which of following is true.

Unless policy designated current beneficiary as irrevocable owner can make change at any time

Owner can only change primary beneficiary with current beneficiary’s consent

Beneficiary can only be changed if court deems the change acceptable

Policyowner will have to cancel this policy and apply for a new one with a new primary beneficiary

Answer 13

Unless the policy designated current beneficiary as irrevocable policyowner can make change at any time

Question 14

Owner names his five children as primary beneficiaries and wife as contingent beneficiary. If owner and one of his children die who would rec policy benefits

The wife
Insured’s estate
Four primary beneficiaries

Answer 14

Four primary beneficiaries

Question 15

Accurately describes change of beneficiary provision

Can only be changed in event of divorce death or severe psychiatric disorders

Requires consent of original beneficiary

Any policy that has death benefit must also have change of beneficiary provision

Answer 15

Any policy that has a death benefit must also have a change of beneficiary provision

Question 16

Mode of premium payment is

Defined as frequency and amount of premium payment

Factor that determines amount of dividends in policy

Method used to compute cash surrender value of policy

Answer 16

Defined as frequency and amount of premiums payment

Question 17

If insured changes premium payment mode from monthly to annually what happens to total premium

Increases
Decreases
Stays same

Answer 17

Decreases

Question 18

Premium mod would result in highest annual cost for ins policy

Monthly
Quarterly
Semi annual

Answer 18

Monthly

Question 19

If there were two primary beneficiaries named in a policy each would rec

Answer 19

50% if death benefit

Question 20

Man works for company a. Woman works for company b. Spouses are covered by health plans through their respective companies that also cover the other spouse. If husband files a claim

Ins through his company is primary
Ins through his wife’s company is primary
Ins plans will split coverage evenly

Answer 20

Ins through his company is primary

Question 21

Husband and wife are insured under group health ins plans at own places of employment and as dependents under their spouse’s coverage. If one of them incurs hospital expenses how will those expenses be paid

The benefits will be coordinated
Neither plan would pay
Each plan will pay equal shares

Answer 21

Benefits will be coordinated

Question 22

Insured is covered under two group health plans under his own and his spouse’s. Suffered a loss of 2000.after insured paid total of 500 deductible and coinsurance primary insurer covered 1500 of medical expenses. What would be paid by secondary insurer

0
500
1000

Answer 22

500

Question 23

Found only in group health plans; to avoid duplication of benefit payments and Overinsurance when someone is covered under multiple group health ins plans

Gender rule
Primary
COB provision

Answer 23

COB provision

Question 24

Loss-amount covered by primary plan=

Answer 24

Amount covered by secondary plan

Question 25

Insured has primary group health plan and excess plan each covering losses up to 10000. Insured suffered loss of 15000. Aside from any copayments or deductibles how much will excess plan pay

2000
5000
0

Answer 25

5000

Question 26

Both parents name children as dependents under group policies then order of payment will usually be determined by the

Gender rule
Birthday rule
Secondary rule

Answer 26

Birthday rule

Question 27

Which is true re occupational vs no occupational coverage

Only group disability income policies can be written on occupational basis

Disability ins can be written as occupational or non occupational

Individual disability policies never cover non occupational injuries

Answer 27

Disability insurance can be written as occupational or non occupational

Question 28

Coverage provided by disability income policy that does not pay benefits for losses occurring as result of insured’s employment is called

Unemployment coverage
Occupational coverage
Workers comp
Non occupational coverage

Answer 28

Non occupational coverage

Question 29

Which of the following statements about occupational vs non occupational coverage is true

Only group disability income policies can be written on an occupational basis

Disability ins can be writtten as occupational or non occupational

Answer 29

Disability ins can be written as occupational or nonoccupational

Question 30

Insured has health ins that covers at work and at home. This was written on what basis

Occupational
Short term
Extended

Answer 30

Occupational

Question 31

Employee insured under group health policy is injured in wreck while performing her duties for her employer. Results in long hospitalization period. Which is true

Group plan will not pay bc employee was injured at work
Group plan will pay
Group plan will pay portion of employee’s expenses

Answer 31

Grou plan will not pay bc employee was injured at work

Question 32

Which is NOT true re partial disability

Benefit payments are typically 505 of total disability benefit

This isa form of ins that covers part time workers
Insured can still report to work and re benefits

Insured would qualify if he couldn’t perform some of his normal job duties

Answer 32

This is a form of ins that covers part time workers

Question 33

What is the benefit that is based on the insure’d loss of earnings after recovery from a disability

Residenal
Recurrent
Partial
Income replacement

Answer 33

Residual

Question 34

Disability income policies can provide coverage for a loss of income when returning to work

Part time
Weekly
Monthly

(…after recovering from disability)

Answer 34

Part time